Technology is constantly evolving, and the changes affect every other economic industry. The betting industry is no exception to the modifications brought by technology.
For years, bettors have had to sign up with bookmakers to place wagers and hopefully win money. Of course, most of the time, bettors are at a loss while the bookmakers make profits. Apart from this, bettors are also at risk of exploitation by these betting sites. Hence the introduction of sports betting exchange.
Betting exchange is a technological means that enable bettors to place wagers without the need for a bookmaker. Every single bettor on the betting exchange site assumes the role of a bookmaker and dictates the method and pricing of bets. The betting exchange puts bettors against one another. Unlike a sportsbook that charges a commission on the winnings of bettors, sports betting exchange sites charge a rather small service commission on every transaction that is carried out on the site.
How sports betting exchange work
A betting exchange is quite straightforward. It is simply a wager between two bettors on the outcome of an event. One person picks a positive outcome, and the other chooses a negative outcome.
What differentiates a sports exchange betting site from a sportsbook is the role a bettor plays in selecting bets and outcomes. In betting exchanges, bettors select that an outcome will not occur. For example, in normal bookmakers, if the site selects Manchester United as a -7 odds favourite, a bettor who selects this point is simply agreeing that the bookmaker’s prediction will occur. However, in a betting exchange, a bettor makes the bet selection, predicting that the wager will not happen. That means the bettor would pick Manchester United not to be -7 odds favourites, which is usually done by bookmakers. For this to occur, another bettor must, however, be on the other side, selecting the same club as a -7 points favourite.
Sports betting exchange site is also similar to a stock exchange market where buyers either buy or short. In the same sense, bettors have the chance to either bet in favour of an outcome or against an outcome.
Differences between Sports betting exchange and Betting sites
There are several differences between betting sites and betting exchanges, the first is that betting exchange sites pits bettors against one another. One bettor wagers against an outcome, while another wagers in favour of the same outcome. This is called lay betting, and this is what differentiates sports exchange betting sites and bookmakers. Lay betting simply means the freedom of punters to wager on any outcome. Unlike sportsbook sites where bettors have no say in selection, every bettor in a betting exchange site gets to choose if they wish to lay or make bets.
Bettors also determine the outcome they wish to bet on. In most sportsbooks, bettors get to only wager on an outcome happening. However, betting exchange gives bettors the freedom to either wager on the outcome or otherwise.
Betting exchange gives bettors the freedom to dictate how their bets are made. Betting depends on individual opinion, and betting exchange allows bettors to place bets on their personal opinion. It allows punters to determine and create their odds on the outcome of any sporting event. A bettor can also choose to bet on odds created by other exchange users. This gives punters the ability to land larger profits since the process are set by them.
Bettors get to determine the acceptable price for bets laid or made. Since bettors are pitting against one another, there is the freedom to look around for another bettor with a price that is suitable and equivalent to the value of a bet. Laying an outcome isn’t much different as a bettor gets to determine how much they are ready to offer a bettor whom a making a bet.
Compared to bookmakers, betting exchanges charge commissions on transactions carried out. Some sites also offer discounts.
Betting exchange sites have several benefits, and while traditional bookmakers also offer benefits, having the freedom to determine how your bets are is what makes sports betting exchanges highly recommended. With betting exchange, there is no fear of having your winnings delayed or not even paid at all, which is very common with bookmakers.